Lawrence Jengar
May 13, 2026 11:14
Jane Street slashes Bitcoin ETF holdings by 70% in Q1 2026 while doubling its exposure to Ether ETFs. Strategic shifts highlight changing market preferences.
Wall Street market maker Jane Street has significantly rebalanced its crypto exposure, slashing Bitcoin ETF holdings by over 70% in Q1 2026 while doubling down on Ether ETFs, according to recently filed 13F disclosures. This shift reflects evolving institutional preferences as Bitcoin-linked products face headwinds.
The firm reduced its positions in flagship Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC). IBIT holdings plunged 71% quarter-over-quarter to 5.9 million shares worth $225 million, while FBTC suffered a 60% cut to 2 million shares, valued at $115 million.
In contrast, Jane Street significantly increased its exposure to Ether-related products, nearly doubling its stake in BlackRock’s iShares Ethereum Trust (ETHA) and adding substantially to Fidelity’s Ethereum Fund (FETH). Combined, these moves brought an additional $82 million into Ether ETFs during the first quarter.
The timing aligns with broader institutional interest in Ether ETFs, as other major players like Wells Fargo also reported increased Ether exposure earlier this year. However, the 13F filings only offer a partial view of Jane Street’s holdings, leaving the firm’s total trading book and net crypto exposure unclear.
Bitcoin Assets Decline Further
Jane Street’s pivot away from Bitcoin extended to equities tied to the asset. The firm reduced its holdings in Michael Saylor’s MicroStrategy (MSTR) by 78%, cutting its stake from 968,000 shares in Q4 2025 to just 210,000 shares in Q1 2026. This represents a drop in value from $145.9 million to $27 million. Interestingly, this comes after a massive 473% increase in MSTR holdings during the prior quarter, signaling a sharp reversal in strategy.
Additionally, Jane Street trimmed positions in Bitcoin mining stocks such as Riot Platforms (RIOT), Cipher Mining, TeraWulf, and Core Scientific.
Selective Upside in Crypto Equities
While scaling back its Bitcoin exposure, Jane Street selectively added to other crypto-linked equities. The firm raised its stake in Riot Platforms to 7.4 million shares from 5 million, increasing the position’s value to $91 million from $63 million. Coinbase (COIN) holdings also grew modestly to 888,000 shares, with a valuation of $155 million.
Galaxy Digital (GLXY) saw the most dramatic increase, with Jane Street’s holdings skyrocketing from just 17,000 shares to 1.5 million, pushing the position’s value from $380,000 to $28 million. These moves suggest a targeted approach to crypto equities, favoring companies diversifying beyond Bitcoin-specific operations.
Jane Street’s strategic reshuffle comes during a period of robust trading performance. The firm reported $16.1 billion in Q1 trading revenue, supported by volatility and gains in AI-related investments, according to Reuters.
As Ethereum continues to gain traction among institutions and Bitcoin-linked products face selling pressure, Jane Street’s pivot could signal broader shifts in market sentiment. Investors will be watching closely for Q2 filings to gauge whether this trend accelerates or stabilizes.
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